Seller‘s Deed Not Properly Transferred

[Terry Sargent]

Hello, I have a lead on an Indiana property that is well-under market value. However, I’ve run into an issue regarding the deed. To add context, here is the situation: The seller was gifted the property in question, by a friend, prior to the friend‘s passing. That was nearly 20 years ago. The Issue is that the seller never took the necessary steps to get the deed transferred over. Therefore, the deed is in the name of the person who has been deceased for 20 years. The seller has been paying property taxes, and is current. What steps can be taken to prove ownership in order to get this sale completed? Would the seller’s time of occupancy be enough to prove ownership? Any insight is appreciated.

[Davido Davido]

@Terry Sargent,  In regard to "What steps can be taken to prove ownership in order to get this sale completed?"

Consult with an Attorney , but as a non-attorney, the steps include filing a "Quiet Title" action.  The seller who was gifted the property would get the title in his name by filing a law suit to "quiet" the title in his name.   In a quiet title action he would be making the claim that he has the right to the property via the now deceased former owner's gift to him and/or via the law of Adverse Possession as suggested by @Christopher Phillips. 

At the hearing(s) on a Quiet Title action the court will review the ownership evidence presented by all parties who show up. Since the last alleged transfer of ownership was around 20 years ago, it is most likely that just the current "gifted" owner would show up and only his evidence would be considered..

However, a key aspect of filing a Quiet Title action is the Court will require the filer to notify all persons with a recorded interest in the property (and their Heirs).  It takes some research, time and usually money.

You could also have the current owner who was "gifted" the property, sign over his not yet legally recognized interest to you via a Quit Claim deed.  Then you would proceed to file a Quiet Title Action yourself, based on the "gifting" and/or Adverse Possession that the issuer of the Quit Claim deed could have relied upon.   In theory, the issue of who gets clear title can even be decided solely upon consideration of affidavits -sworn statements, but most Judges prefer to question witnesses.  Let us know how it works out.